Abuja, June 8, 2021 The African Export-Import Bank (Afreximbank) has pledged support for African Organisation for Standardisation (ARSO) in harmonising standards for automotive sector on the continent. This is against the backdrop of plans by ARSO to inaugurate the completed harmonised African Automotive Standards by June in Nigeria, Rwanda, Ghana, Malawi, South Africa and Zimbabwe. Afreximbank in a statement on Tuesday in Cairo, Egypt said that the harmonised standards would facilitate an accelerated development of the sector across the continent. It added that the harmonised standards were to be adopted by individual African countries, facilitating cross-border trade, under the African Continental Free Trade Agreement (AfCFTA). The bank said that there were 1,432 international automotive standards worldwide, largely developed by the International Organisation for Standardisation and the American Society for Testing and Materials. It said that to initiate the process of developing African Automotive standards, ARSO prioritised “Whole Vehicle Standards” encompassing motor vehicle components, accessories and replacement parts. “It is anticipated that some 250 standards will need to be harmonised based on the basic components, accessories and replacement parts which are necessary to keep a vehicle safe and operational. “ARSO had initially targeted 18 basic standards based on the demands of the industry to facilitate development of the automotive sector on the continent. “Since inception of the project in 2019, ARSO has, with the support of Afreximbank, been successful in harmonising 42 international standards, well above the targeted 18.” The bank said that an initial grant provided by it was critical...

As policymakers in the least developed countries address COVID-19’s social and economic consequences, they must ensure recovery efforts are gender-responsive. Although the number of confirmed COVID-19 cases per capita has been lower in the least developed countries (LDCs) than expected, the socio-economic fallout for their populations has been dire, pushing an estimated 32 million more people into extreme poverty in 2020. Women in these countries have borne the brunt of the crisis, as they work mainly in the hardest-hit sectors, such as tourism, horticulture and textiles. A new study by UNCTAD and the Enhanced Integrated Framework (EIF) warns that the gender gap in income and overall well-being in LDCs will continue to worsen unless COVID-19 recovery efforts adopt a gender perspective. “As policymakers urgently try to restart their economies, they should ensure that both women and men receive the necessary means and support to recover from this crisis,” UNCTAD Acting Secretary-General Isabelle Durant said as she presented the study on 8 March. “For an inclusive and better recovery, policies must be gender-sensitive.” Gender-responsive trade policies needed The study, Trade and Gender Linkages: An analysis of Least Developed Countries, provides recommendations to help LDC governments adopt trade-related polices that are more gender responsive. EIF head Ratnakar Adhikari said: “We had a long way to go to fix the world’s gender gap, and the pandemic has made the journey even more arduous, especially in the world’s poorest countries, where the challenges facing women are even more dire.” “But if we’re committed to...

In Summary It is expected that up to 90 per cent of goods and services traded within the continent will benefit from preferential trade terms. This includes elimination of tariff barriers. The Africa Continental Free Trade Area (AfCFTA), billed as a catalyst for intra-African trade, officially commenced operations on January 1, 2021, six months later than initially anticipated. Through the AfCFTA, tariff and non-tariff barriers that have historically posed as an impediment to intra-African trade will be conclusively dealt with. Specifically, it is expected that up to 90 per cent of goods and services traded within the continent will benefit from preferential trade terms, inclusive of the elimination of tariff barriers. To date, all African states, save for Eritrea, have signed up to the AfCFTA, while all but twenty African states have ratified the AfCFTA. Within the East African region, only Tanzania, Burundi and South Sudan are yet to ratify the agreement. In a bid to ensure that the East African Community (EAC) is not left behind in taking advantage of the agreement, Tanzania, Burundi and South Sudan have been urged to complete the ratification process of the AfCFTA before 01 June 2021. It is anticipated that the successful implementation of the AfCFTA will have tangible benefits on the African continent, inclusive of accelerated industrial development, expanded economic diversification and enhanced job creation. Indeed, where AfCFTA is successfully implemented, intra-African trade stands to increase by 33 per cent in the medium term, from the current 16 per cent. This will...

IT IS encouraging to note that last year, the Zambia Development Agency (ZDA) recorded investments worth US$5.8 billion from 326 registered projects. This represents a 19.7 percent increase from the US$4.8 billion investments recorded from 350 in 2019. In the same vein, over US$2.1 billion investment was last year actualised from the multi-facility economic zones and industrial parks, creating over 16,000 jobs in the country. The actualised investment increased from US$1.9 billion recorded in 2019, increasing the number of jobs created in the MFEZ to 16,676 compared to 14,775 in the previous year. ZDA board chairperson David Masupa noted, and rightly so, that the surge in investments confirms the conducive business and investment climate created by Government through ease of doing business reforms, political and economic stability. It is also encouraging to note that of the total registered investments last year, over US$3.1 billion was foreign direct investment, while US$2.68 billion was domestic direct investment. This shows that Government is not only creating a conducive environment for foreigners, but locals as well. It is also good that locals are also actively taking part in the country’s economic activities as opposed to the past when investment ventures were solely left to foreigners. This shows that our country’s development agenda is on a positive trajectory. We know that local involvement in economic activities is key to development. It has been established that involvement of locals in investment ventures ensures that the money generated remains within the country. However, in the case where...

Thrust five years into the future by Covid-19, as management firm McKinsey puts it, most of what we expected to see in 2030 will soon be upon us. A disruption in the workplace in 2020 changed the fortunes of millions, either throwing them out of their jobs or elevating their profiles. Most of those who had an upturn in fortunes were in technology and automation. The World Economic Forum (WEF) late last year released a list of jobs that, it said, will be marketable in the future - which we might already be in - and those that will be obsolete because of automation. It is not surprising from the data that technology will be taking over a significant number of jobs. It was certain the world was always inching closer to this by the day. The world is welcoming artificial intelligence (AI) and robotics on an unprecedented scale and the Internet of Things (IoT) is now common talk. The need to cut overheads and reduce office population amid the pandemic prompted industry leaders to find ways of using automated systems to deliver, with many people losing their jobs. “The past two years have seen a clear acceleration in the adoption of new technologies among the companies surveyed,” said WEF. “Cloud computing, big data and e-commerce remain high priorities, following a trend established in previous years.” Job loss Sectors such as the arts, entertainment and recreation, hospitality, retail, mining, real estate, rental and leasing saw many employees lose their jobs....

In Summary Freight charges from Mombasa to Kampala increased from $2,200 (Sh238,150) to $2,500 (Sh 270,625 ) per container. This is pegged mainly on the delays along the corridor and especially at the ports of loading and the exit borders. Transport cost along the Northern Corridor has jumped 48 per cent in the wake of the Covid-19 pandemic, mainly on measures to contain the virus by regional states. A report by the Shippers Council of Eastern Africa (SCEA) indicates road freight rates increased in the key trading route which runs from the Port of Mombasa, across the country, into Uganda, Rwanda, DR Congo, Burindi and South Sudan. Freight charges from Mombasa to Kampala increased from $2,200 (Sh238,150) in the pre-pandemic period to $2,500 (Sh 270,625 ) per container (both 20 and 40 foot), which extended into the first half of this year. The cost of moving containerised goods to Kigali from Mombasa also increased from $3,400 (Sh 368,050) to $3800 (Sh 411,350), pegged mainly on the delays along the corridor and especially at the ports of loading and the exit borders. Uganda is the biggest destination for transit cargo along the corridor, accounting for about 83.2 per cent of total transit volumes. That of transporting a container from Mombasa to South Sudan increased to $4,500 (Sh487,125 ) from $3,600 (Sh 389,700) while moving a container to DRC went up to $6,000( Sh649,500 ) between March and June this year, from $5,000 (Sh 541,250). In terms of border crossing times, it...

In May 2021, the bridge across the Zambezi River linking Botswana and Zambia was opened by the presidents of the two countries. The construction of the bridge, which replaces the longstanding, slow ferry service across the river, means trucks on regional routes can now cross the river in a few hours, or less, rather than the previous three days to a week. It also means they can avoid using the biggest crossing between the ports and factories of South Africa and the rest of Southern Africa – Beit Bridge, which is also one of the most congested borders in Africa. A one-stop border post at the bridge will allow easier thoroughfare. This project embodies the benefits that good infrastructure and joined-up bureaucracy offer regional trade, both of them generally in short supply. More than 250 trucks a day should be able to cross the Zambezi instead of the handful that were able to cross before, bringing down costs, increasing the security of cargo and providing an alternative route for trade to the sea for inland markets. It is not without potential pitfalls. One is the congestion that is likely to develop at Martin’s Drift border post, currently an alternative to the main border post at Gaborone into Botswana, as demand increases. And sections of the roads along this main trade route, an integral part of the North South Corridor, are in urgent need of repair, for example several hundred kilometres of a two-lane highway through Botswana to Kazungula, with eroded...

Ian Lessem, Managing Partner at HAVAÍC, investors in early-stage, high-growth technology businesses, notes a significant increase in investment demand for African technology startups. Startups on the continent are at a distinct advantage because they compete out of necessity. As a result, they can, and very often do stand toe to toe with startups in more the established tech hubs of Palo Alto, Singapore, London and Tel Aviv. African innovators face local challenges so pervasive; they simply have no choice but to tackle them head on and become subject matter experts in finding solutions for real world problems like food security, health, education, safety, financial services and logistics. African technology driven solutions borne out of necessity create efficiencies, new products and opportunities, and most importantly solve local challenges that resonate globally. Because of this they have the inherent ability to leap across national boundaries and sidestep the usual rules of cultural friction. With the world having quickly adjusted to the realities of the ongoing global social and economic crisis as a result of the Covid-19 pandemic, solutions that solve real world challenges are without a doubt the best opportunities for growth. People and businesses are craving solutions that make their day to day lives easier, better and less frictional, and the pace at which they are adopting technology to do this continues to accelerate. Not only does HAVAÍC support promising startups, it also understands the power of unlocking the potential of Venture Capital (VC) as an investment class in Africa. Investing...

With all the challenges that the Covid-19 pandemic has presented to Africa, there are many exciting changes afoot, and few are potentially more impactful than the African Continental Free Trade Agreement (AfCFTA). The AfCFTA is an exciting game changer agreement for the countries who are signatories. Currently, Africa accounts for just 2% of global trade. And only 17% of African exports are intra-continental, compared with 59% in Asia and 68% in Europe. The pact is designed to create the largest free trade area in the world measured by the number of countries participating. Connecting 1.3 billion people across 55 countries with a combined gross domestic product (GDP) valued at $3.4trn. It will boost regional income by 7% or $450bn, and lift 30 million people out of extreme poverty by 2035. Wages for both skilled and unskilled workers will also be boosted by 10.3% for unskilled workers, and 9.8% for skilled workers. While the Covid-19 pandemic has thrown a harsh spotlight on the vulnerabilities of global supply chains, the putting in place of the AfCFTA agreement couldn’t be more timely for Africa. AfCFTA is a catalyst for new ways of doing business, producing, working and trading within Africa and with the rest of the world. It highlights the significant and increasing commitment of the African Union to reducing poverty through trade. As Ngozi Okonjo-Iweala, newly appointed as the WTO director general, recently stated, “Trade is a force for good, and properly harnessed can help lift millions out of poverty and bring...

The Southern African Development Community (SADC) has commissioned the Kazungula Bridge and One Stop Border Post (OSBP). The bridge and state-of-the-art facilities were officially commissioned by the President of Botswana (H.E. Eric Mokgweetsi Masisi) and the President of Zambia (H.E. Edgar Chagwa Lungu) at the quadriphonic meeting point of Botswana, Zambia, Namibia and Zimbabwe across the Zambezi River. The bridge cost a total of USD 259.0 million which was funded by the governments of Botswana and Zambia with support from the African Development Bank (AfDB) and the Japan International Cooperation Agency (JICA). The bridge and OSBP are expected to link the port of Durban in South Africa to the Democratic Republic of Congo and Tanzania through the North-South Corridor to facilitate trade and regional integration. My fear is that the Durban port may see less business, but this may be offset by other benefits like lessening congestion at the Beit Bridge border. It is heartening to learn that the engineering design of this massive project, was designed in such a way that it had to avoid encroachment in Zimbabwe, bcze Mugabe, was opposed to the idea. In retrospect, our region lags behind in terms of economic integration and development. Our regional ecosystems was left exposed by the sudden decline of of alephants and Boabab trees, that have been part of our ecosystems for the last 3000 years. Read original article